Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) Corporation, a tech provider for the remote economy, said it has completed the previously announced acquisition of the assets of 2747524 Ontario Inc, operating as Cylix Data Group (CDG) for C$32.35 million.
The Toronto-based technology company said it will now advance the development of Cylix's artificial intelligence functionality to further differentiate its offering in the marketplace in an effort to position Cylix to become one of the leading aggregators and originators of corporate and personal data.
"We are very pleased to complete the acquisition of Cylix's innovative technology platform, Xigem co-founder and CEO Brian Kalish said in a statement.
“Cylix is a very welcome addition to Xigem's portfolio of SaaS assets, and marks Xigem's entrance into the Big Data market, he added.
READ: Xigem Technologies inks definitive agreement in Cylix Data Group acquisition
Cylix Data is a business-to-business intelligence technology company that has software that boosts efficiency and productivity for executives by giving them information at their fingertips to help key decision-making and risk management. The proprietary database of over 74 million data points has been pulled from both third-party vendors and internally originated sources.
Xigem said the business risk profiling service asset underlying CDG has been used by hundreds of businesses including large blue-chip companies to improve their decision-making and productivity, manage risk and optimize their returns.
It said it will operate Cylix as a stand-alone business unit, with Cylix to become the technology platform supporting the company's other core technologies. Once integrated, Xigem's new technology is expected to create a robust platform to capitalize on the growing multi-billion dollar big data market.
Xigem noted that, according to research and markets, the global market for big data was estimated at US$70.5 billion in 2020, and is projected to reach US$243.4 billion by 2027, spurred on in large part by the ramifications of the coronavirus (COVID-19) pandemic.
It said the segment in which Cylix currently competes, the global fraud detection and prevention market, was estimated at US$19.8 billion in 2019 and is expected to grow to US$106.7 billion by 2027, exhibiting a compound annual growth rate of 24% during the forecast period.
Under the terms of the transaction, Xigem issued 64,700,000 units at a deemed price of $0.50 each, with each unit comprised of one common and one-seventh of a purchase warrant, entitling the holder to acquire an additional share for $0.60 for a period of 24 months.
The company will appoint a nominee of CDG to its board of directors, and may also appoint an observer to its board of directors. It said details of the board and observer appointments will be announced shortly.
Xigem Technologies (CSE:XIGM, OTCQB:XIGMF) powers technology for the near trillion-dollar remote economy that businesses around the globe are embracing in a post-coronavirus pandemic economy. Its Software-as-a-Service (SaaS) technology platform, iAgent, provides organizations, businesses and consumers with the tools necessary to support remote working and learning.
Xigem's software improves the capacity, productivity, and overall remote operations for businesses, consumers and other organizations.
Contact the author at stephen.gunnion@proactiveinvestors.com